What is a Creditor Identifier?

What is a Creditor Identifier?

A merchant must have a Creditor Identifier to collect SEPA Direct Debit from
payers. A Creditor Identifier is a unique reference which identifies each SEPA
Direct Debit originator. If you are familiar with domestic UK Direct Debit, it
is the equivalent of a Service User Number (SUN).

What is a Creditor Identifier?

A Creditor Identifier is a unique reference for organisations collecting
payments by SEPA Direct Debit. It must be included in each SEPA Direct Debit
collection and allows the payer and the payer’s bank to:

Verify each SEPA Direct Debit

Request refunds or make complaints

Check the existence of a mandate when a payment is requested

Merchants can also use a “Creditor Business Code” extension to identify
different business activities. This code allows a merchant to identify
different business lines or different services. It is not needed to identify a
mandate in a unique way, but contains useful information for the merchant and
for the customer.

Getting a SEPA Creditor Identifier

You can get a SEPA Creditor Identifier in one of two ways:

1. Via your preferred bank

Contact your bank to start the process. They will be responsible for its generation. You may need to meet certain
criteria set by the bank (similarly to with SUNs). It is likely that banks
will look for the following key requirements:

Management expertise to enforce the SEPA Direct Debit scheme rules,
minimise submission errors, and maintain the reputation of the scheme.

Financial reserves to refund any chargebacks. Under the UK Direct
Debit scheme, these reserves must be placed in a surety bond.

Contractual capacity to indemnify the bank against any payments charged
back.

2. Via GoCardless

GoCardless enables you to use our master Creditor
Identifier to collect from your customers, or to use a Creditor Identifier in your name. This Creditor Identifier can then be
used in any SEPA country for any scheme and whichever bank you collect through.

To find out more about collecting SEPA Direct Debits or to register your interest with GoCardless, check out our GoCardless Europe page.

GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2009, registration number 597190, for the provision of payment services.

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